Arista Networks (ANET)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	3,265,034	3,070,498	2,832,098	2,648,063	2,422,026	2,213,480	1,993,134	1,769,053	1,581,796	1,363,239	1,173,715	1,032,479	930,879	863,771	830,750	784,911	738,863	725,855	772,011	817,414
Revenue (ttm)	US$ in thousands	7,003,150	6,613,150	6,311,670	6,080,190	5,860,170	5,595,280	5,262,620	4,855,590	4,381,306	3,930,215	3,502,112	3,157,541	2,948,037	2,772,060	2,628,794	2,462,045	2,317,512	2,221,576	2,274,860	2,342,611
Pretax margin		46.62%	46.43%	44.87%	43.55%	41.33%	39.56%	37.87%	36.43%	36.10%	34.69%	33.51%	32.70%	31.58%	31.16%	31.60%	31.88%	31.88%	32.67%	33.94%	34.89%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,265,034K ÷ $7,003,150K
= 46.62%

The pretax margin of Arista Networks has shown a generally positive trend over the reviewed periods between March 31, 2020, and December 31, 2024. The pretax margin started at 34.89% in March 2020, gradually declined to 31.16% by September 2021, and then began increasing steadily.

From December 2021 to June 2023, there was a notable uptrend in the pretax margin, which reached its peak at 46.62% by December 31, 2024. This upward trajectory in the pretax margin indicates an improvement in Arista Networks' ability to generate profits before accounting for tax expenses during this period.

Overall, the consistent rise in the pretax margin suggests that Arista Networks has been effectively managing its operating expenses and generating higher revenues relative to its costs, resulting in a stronger financial performance over the years. This positive trend bodes well for the company's profitability and financial health.